Mnuchin acknowledges 15 percent corporate rate not likely

That remains President Donald Trump’s goal, but the cost of getting that low could stand in the way, Mnuchin said at an event hosted by CNBC.

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“I don’t know if we’ll be able to achieve that, given the budget issues, but we’re going to get this down to a very competitive level,” he said.

A rate between 20 percent and 25 percent has been described as more feasible, and Mnuchin said the exact number is less important than accomplishing tax reform.

Mnuchin and White House top economic adviser Gary Cohn are scheduled to meet with Senate Majority Leader Mitch McConnell and the Republicans on the Budget Committee Tuesday to talk about passing a budget, which will determine the scope of a tax reform bill that lawmakers can pass without Democratic votes.

Trump is hosting a bipartisan dinner to talk about tax reform Tuesday night that will include three Senate Democrats. But Mnuchin also said Trump’s recent agreement with Democratic leaders in Congress on hurricane disaster aid and the debt limit doesn’t signal bipartisan tax reform is being pursued. Administration officials and GOP leaders in Congress are prepared to use reconciliation, the Republican-only pathway to passing legislation by preventing Senate Democrats from blocking bills.

Mnuchin reiterated plans to eliminate the federal deduction for state and local taxes, and added that he hoped state taxes wouldn’t rise in places like California and New York.

Trump, Mnuchin and congressional Republicans are also negotiating to reduce taxes for businesses that file their taxes through their owners' individual returns, but they will limit which firms qualify for lower rates.